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PRESS RELEASE July 6, 2016

World Bank Prices Successful USD 5 Billion 3-Year Global Benchmark Bond

Washington, DC, July 6, 2016 – The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) today priced a USD 5 billion 3-year global benchmark that matures on August 15, 2019. Responding to demand for a high-quality 3-year benchmark offering, this was the first benchmark transaction of the World Bank’s new financial year and the first new benchmark bond issued by a supranational following recent market volatility.

The order book closed in excess of USD 6.1 billion with over 100 accounts participating. Joint lead managers for this global bond are BNP Paribas, Citi, HSBC, and TD Securities. 

The 3-year benchmark has a coupon of 0.875% per annum, payable semi-annually in arrear, and a maturity date of August 15, 2019.  It offers investors a yield of 0.882% (semi-annual), equivalent to 22.7 basis points over the 0.875% UST due June 2019, making it the tightest USD 3-year benchmark from a sovereign, supranational or agency (SSA) issuer of 2016.

"We are pleased to reopen the USD benchmark market with an extremely successful transaction, especially after the recent market volatility. The massive demand proves that investors everywhere seek the highest quality names for their portfolios. Our borrowers will benefit from the tighter pricing we achieved in addition to critical finance for projects and development programs that are key to their economic development. We are very grateful for the strong support from our investors and financial partners for our global sustainable development mandate,” said Arunma Oteh, Vice President and Treasurer, World Bank.


Transaction Summary


World Bank 
(International Bank for Reconstruction and Development, IBRD)

Issuer rating:

Aaa /AAA




USD 5 billion

Settlement date:

July 13, 2016


0.875% per annum

Coupon payment dates:

Payable semi-annually on 15 August and 15 February of each year

Maturity date:

August 15, 2019

Issue price:


Issue yield:

0.882% per annum (s.a)


Luxembourg Stock Exchange

Clearing systems:

Fedwire, Euroclear, Clearstream



Joint lead managers:

BNP Paribas, Citi, HSBC, TD Securities


Joint lead manager quotes

“The first major USD benchmark since the Brexit volatility did not disappoint. The World Bank has printed the tightest SSA USD 3-year of 2016 yet offering only a slight concession to their secondary curve, testament to the World Bank’s ability to re-open markets by providing a new liquid reference point for investors and issuers,” said Jamie Stirling, Head of SSA DCM, BNP Paribas.

“With this benchmark the World Bank has reopened the jumbo SSA USD market after all the market turmoil associated with the UK referendum.  This transaction represents the tightest pricing on a 3-year SSA deal all year which highlights the benchmark status of the Word Bank credit and also highlights that the market is open for other supply to follow,”said Philip Brown, Head of Public Sector Capital Markets, Citi.

“The World Bank has shown their traditional leadership in the global USD space, bringing an impressively oversubscribed deal after an extended period of primary market inactivity.  Despite the volatility, World Bank benefited from first-mover advantage and were able to print the tightest 3-year SSA transaction of 2016 to date with a top quality order book," said PJ Bye, Global Head of Public Sector Syndicate, HSBC.

“This is a very important deal for the SSA market given recent volatility and the new yield environment post-Brexit. The market looked towards World Bank to provide leadership and World Bank has given the market what it wants. The size and quality of the order book is once again testament to World Bank’s global following. World Bank has got their new funding year off to a flying start,” said Paul Eustace, Head of Syndicate at TD Securities, TD Securities.

The present transaction is consistent with the World Bank’s longstanding practice of deploying its franchise as an issuer in the international capital markets to offer investor’s high-quality, liquid instruments.  This approach has direct benefits for World Bank member countries as well, since as a cooperative institution it is able to fund its activities as a provider of financial services to its members on highly attractive terms.

About the World Bank

The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody’s/S&P), is an international organization created in 1944. It operates as a global development cooperative owned by 189 nations. It provides its members with financing, expertise and coordination services so they can achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global economic and environmental problems. The World Bank Group has two main goals: to end extreme poverty and promote shared prosperity. The World Bank (IBRD) seeks to achieve them primarily by providing loans, risk management products, and expertise on development-related disciplines to its borrowing member government clients in middle-income countries and other creditworthy countries, and by coordinating responses to regional and global challenges. The World Bank has been issuing bonds in the international capital markets for over 60 years to fund its sustainable development activities and achieve a positive impact. Information on bonds for investors is available on the World Bank Treasury website: